Bizdaq raises $1.5m to launch buy-and-sell platform for UK businesses
Business transfer site aims to disrupt market and get fair terms on agents’ fees for customers
Bizdaq, a self-service transfer market to help business owners buy and sell small and medium sized businesses, has launched following a $1.5m investment.
The company was founded by former sales broker Sean Mallon after leaving the brokerage firm he set up age just 21. Whereas typical business transfer agents take an average commission of £15,000 on a business sold for £100,000, Bizdaq claims its subscribers should expect to pay an average of £500 for the whole process.
The platform also features a tool that instantly estimates the likely sale value of any business, and step-by-step instructions and notifications to ease the process for sellers and buyers. Profile listings for members’ businesses are syndicated to up to 20 for-sale directories to ensure they reach the widest possible interest.
Mallon is hoping Bizdaq will disrupt the market in the same way online rivals did to the property agent sector, and help small and mid-sized businesses capitalise on Britain’s recent economic growth.
The finance – which was mostly provided by co-founder and former chief executive of Republic Tim Whitworth – will be used to fuel the company’s ambitious growth ambitions, and in the launch of a nationwide marketing campaign.
Mallon commented: “When hard-working business owners decide to sell up, brokerages can help them find a buyer. But traditional brokerages tie business owners in to strict 12-month contracts, are often too slow to act and charge sellers up to 15% of their sale fee.
“By launching as a monthly subscription online service, Bizdaq gives business owners the flexibility and price point to sell on with far lower outlay, or even to change their mind without having sunk unnecessary cost. It’s about giving small businesses the tools needed to complete their sale as well as giving them choice. We want to give them more freedom to choose the option better suited to their needs.”